Sea (SE) Q3 2024 earnings summary

Executive summary

• Achieved strong growth and improved profitability across e-commerce, digital financial services, and digital entertainment, with positive adjusted EBITDA in both Asia and Brazil for e-commerce.

• Shopee maintained market leadership in Asia and Brazil, with robust user and order growth, improved monetization, and logistics efficiency.

• Digital financial services saw over 70% year-on-year loan book growth and stable asset quality, with expansion in both on-platform and off-platform use cases.

• Garena's Free Fire bookings grew over 24% year-on-year, with daily active users up 25% and strong engagement across regions.

• Group adjusted EBITDA reached $521.3M, a significant increase from $35.3M in Q3 2023.

Financial highlights

• Total GAAP revenue increased 31% year-on-year to $4.3B in Q3 2024, driven by e-commerce and financial services.

• Gross profit rose to $1.9B, up from $1.4B year-over-year.

• Net income was $153.3M, compared to a net loss of $144M in Q3 2023.

• Adjusted EBITDA surged to $521.3M from $35.3M in Q3 2023.

• Operating income reached $202.4M, reversing a loss of $127.7M in Q3 2023.

Outlook and guidance

• Shopee is on track to deliver full-year guidance of mid-20% year-on-year GMV growth.

• Free Fire's full-year bookings expected to grow over 30% year-on-year.

• Management maintains a strong growth mindset for 2025, focusing on profitable expansion across all segments.